Edited version of your private ruling

Authorisation Number: 1012505125179

Ruling

Subject: GST and tax invoice

Question

Can an agent who is unregistered for the goods and services tax (GST) issue a tax invoice on behalf of a GST-registered landlord for the purposes of section 153-15 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Advice

Yes, an agent who is unregistered for GST can issue a tax invoice on behalf of a GST-registered landlord for the purposes of section 153-15 of the GST Act.

Relevant facts

You as tenant have entered into a lease agreement with a landlord through the landlord's agent (agent) for a property located in Australia.

The landlord is registered for GST and the agent is not registered for GST.

You have provided us with a copy of a tax invoice issued by the agent. The tax invoice showed the date, ABN of the agent, the ABN of the owner of the property, what is supplied, the total amount for the supply and the amount of GST paid for the supply.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 section 29-70

A New Tax System (Goods and Services Tax) Act 1999 section 153-15

Reasons for decision

Goods and Services Tax GSTR 2000/37 describes agency relationship and according to paragraph 15 of GSTR 2000/37, when an agent uses his or her authority to act for a principal, then any act done on behalf of that principal is an act of the principal. The landlord as principal therefore makes a supply or acquisition if their agent makes it on their behalf.

Subsection 29-70(1) of the GST Act sets out the requirements of a tax invoice and states:

(1) A tax invoice is a document that complies with the following requirements:

(a) it is issued by the supplier of the supply or supplies to which the document relates, unless it is a *recipient created tax invoice (in which case it is issued by the *recipient);

(b) it is in the *approved form;

(c) it contains enough information to enable the following to be clearly ascertained:

i. the supplier's identity and the supplier's *ABN;

ii. if the total *price of the supply or supplies is at least $1,000 or such higher amount as the regulations specify, or if the document was issued by the recipient - the recipient's identity or the recipient's ABN;

iii. what is supplied, including the quantity (if applicable) and the price of what is supplied;

iv. the extent to which each supply to which the document relates is a *taxable supply;

v. the date the document is issued;

vi. the amount of GST (if any) payable in relation to each supply to which the document relates;

vii. if the document was issued by the recipient and GST is payable in relation to any supply - that the GST is payable by the supplier;

viii. such other matters as the regulations verify;

(d) it can be clearly ascertained from the document that the document was intended to be a tax invoice or, if it was issued by the recipient, a recipient created tax invoice.

(*denotes a defined term is section 195-1 of the GST Act)

Subsection 29-70(2) of the GST Act provides that the supplier of a taxable supply must, within 28 days after the recipient of the supply requests it, give to the recipient a tax invoice for the supply, unless it is a recipient created tax invoice.

In this instance, paragraph 29-70(1)(a) and subsection 29-70(2) of the GST Act require that the principal (landlord) as the supplier issue a tax invoice for a taxable supply. However, if the principal makes a taxable supply through an agent section 153-15 of the GST Act allows a principal or agent, but not both, to issue the tax invoice.

Section 153-15 of the GST Act states:

153-15 Tax invoices

(1) If you make a *taxable supply through an agent, an obligation to issue a *tax invoice relating to the supply:

(a) arises whether the *recipient makes a request for a tax invoice to you or the agent; and

(b) is complied with if either you or the agent gives the recipient a tax invoice within 28 days after the request.

(2) However, you and the agent must not both issue separate *tax invoices relating to the supply.

(3) This section has effect despite section 29-70 (which is about tax invoices).

Section 153-15 of the GST Act does not state that the agent must be registered for GST to issue the tax invoice. Section 153-15 of the GST Act only varies the requirement who can issue a tax invoice in paragraph 29-70(1)(a) and subsection 29-70(2) of the GST Act. This view is considered in paragraph 96 in Goods and Services Tax Ruling GSTR 2013/1 which states:

96. Accordingly, if an entity makes a taxable supply through an agent, the agent can issue a tax invoice for the entity. It is not necessary that your agent is registered, or required to be registered for GST. Similarly, an input tax credit for a creditable acquisition an entity makes through their agent is attributable to a tax period if the agent holds the tax invoice.

Accordingly, an agent who is not registered for GST can issue a tax invoice on behalf of the landlord for the purposes of section 153-15 of the GST Act. The other requirements in subsection 29-70(1) of the GST Act (which includes having the ABN of the supplier) must still be met for the agent's tax invoice to be a valid tax invoice.